“As the demand for faster broadband speeds grows, we are putting measures in place to ensure Canada’s internet market remains dynamic,” said CRTC chair and CEO Ian Scott in a statement.

Major telecom companies have warned that their investments in expanding infrastructure could be impacted if wholesale rates are set too low.

The CRTC announcement was welcomed by the Canadian Network Operators Consortium, which represents smaller internet providers.

“This is just a great decision for broadband consumers in Canada, because it opens the door to lower prices, higher speeds, and the great innovative services that members of CNOC and companies like us perform,” said Matt Stein, chairman of the CNOC and CEO of Distributel.

Byron Holland, president and CEO of the Canadian Internet Registration Authority, said in a statement that he welcomed the decision, and encouraged the regulator not to delay in also setting wholesale rates for faster fibre-based home internet access.